Newark Star-Ledger says sale or closure possible

September 16, 2008 2:50:01 PM PDT

Eyewitness News

NEWARK, N.J. --

The Star-Ledger of Newark is notifying employees that the newspaper will be sold or closed in early January unless it reaches a contract deal with its drivers union. Publisher George Arwady told employees in a memo Tuesday that it is doubtful drivers will ratify a new deal by Oct. 8. As a result, formal notices required by law will be sent out this week advising employees that the newspaper will be sold or close on Jan. 5.

The Star-Ledger is New Jersey's largest newspaper with a daily circulation of about 350,000. The paper has posted losses for at least three straight years and is on pace to lose between $30 million and $40 million in 2008.

Arwady reported progress in negotiating in two of three areas he had cited earlier for the paper to avoid closure or sale.

In late July, he said 200 of the paper's 750 full-time nonunion employees needed to apply for a buyout by Oct. 1, and he said the paper needed a new agreement with its mailers union.

Arwady, who did not return a telephone call from The Associated Press, did not indicate in his memo how many employees have agreed to a buyout. He said the mailers union has a ratification vote scheduled for Monday.

A message left at the office of the Newspaper and Mail Deliverers Union in Long Island City, N.Y., was not immediately returned.